Yale Settles Suit Over Employee Wellness Program

Bob Edwards:

Hi. I'm Bob Edwards with an AARP Take on Today.

Bob Edwards:

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Bob Edwards:

In July of 2019, AARP Foundation filed a class action lawsuit against Yale University. We first covered the matter on episode 54 of this program. This month, after almost three years, the matter of Kwesell v. Yale University was finally settled. The lawsuit alleged that certain university workers and their families were required to participate in the school's employee wellness program. If they refused, they would have to pay an opt-out fee of $25 each week, amounting to $1,300 a year. When we talked with two of the plaintiffs in 2019, they discussed how they felt they were put in a difficult spot. To opt out of the program would've meant paying the fees, but to opt into the program meant that they could be giving up private medical information to a third-party company. Here to tell us about the lawsuit's origins and its conclusion is Dara Smith, a senior attorney at AARP Foundation who represented the plaintiffs in the case. Dara, welcome back to the show.

Dara Smith:

Thank you.

Bob Edwards:

What was your reaction when you first heard about what was allegedly happening at Yale University?

Dara Smith:

Well, we really thought that the wellness program there was consistent with some of what we had been seeing throughout the country, and implicated some of the issues that we dealt with in the AARP versus EEOC lawsuit in 2016, about wellness programs that basically charge people money for nonparticipation.

Bob Edwards:

So, it would've had an impact on older workers.

Dara Smith:

Exactly, and older workers, on average, tend to need to undergo more testing, more healthcare every year. So a lot of these wellness programs require them to go through more types of exams to avoid the penalty, and that's what we saw with a lot of folks. So, making sure that that was genuinely their choice was a priority.

Bob Edwards:

Now, what was the result of the lawsuit?

Dara Smith:

So we have asked the court in Connecticut to approve a class action settlement in which Yale is agreeing to pay $1.29 million, over a million of which is proposed to go back to folks who paid fees. And also for some part of the award to go to people who complied with a program, and particularly those who went to health coaching and whose spouses went to health coaching. Also, Yale is agreeing that, while they're going to continue the program, there will be no opt-out fees for at least four years unless there's a change in the law. They've also agreed to change some of their data privacy practices to make sure that people know what's happening with their information and agree to it.

Bob Edwards:

Now, how did the plaintiffs feel about the settlement?

Dara Smith:

They were very happy. I think they're very excited to have been able to make a change for themselves and for their coworkers.

Bob Edwards:

So, this is the result you were hoping for?

Dara Smith:

Absolutely. We think that this settlement really provides a roadmap for employers who want to have wellness programs and offer that opportunity to their employees, but make it genuinely voluntary. These services are something that people might want, but they should genuinely get to choose whether they participate in it or not, and not have to pay a fee if they don't. So we really are very excited to see this outcome, both financially and in terms of what Yale is agreeing to do going forward.

Bob Edwards:

Are there resources available for people who feel unjustly wronged by their employers?

Dara Smith:

Yes. Certainly, employees can go to the Equal Employment Opportunity Commission, the EEOC. If it has to do with age or disability discrimination issues, they can reach out to us at AARP Foundation in the litigation section for sure, and we'll talk to them and see if there's something we can do to help or a direction we can point them in.

Bob Edwards:

Anything else you'd like to mention?

Dara Smith:

That it'll be a few months before the final order is in on the lawsuit, assuming the court approves it, but we're very happy with this conclusion and just so excited to move forward.

Bob Edwards:

Before we wrap up, we should note that Yale has provided a statement about the settlement. Stephanie Spangler, Vice Provost for Health Affairs and Academic Integrity at the school, said, "We designed the Health Expectations Program with our union partners and the advice of healthcare and legal experts. Nevertheless, we feel it's best to resolve what would've been expensive litigation and move forward. Our relationship with our employees is an important priority." Dara Smith is a senior attorney at AARP Foundation. Thank you, Dara.

Dara Smith:

Thank you.

Bob Edwards:

That's it for this week's episode. You can find more resources in the show notes. If you liked this episode, please let us know by emailing us at newspodcast@aarp.org. Thanks to our news team, producers Colby Nelson and Danny Alarcon, engineer Julio Gonzales, executive producer Jason Young, and my co-hosts Wilma Consul and Mike Ellison. Become a subscriber on Spotify, Apple Podcast, Stitcher, or other apps, and be sure to rate our show as well. For an AARP Take on Today, I'm Bob Edwards. Thank you for listening.